ASX:VMX

Stock Analysis Report

Executive Summary

Valmec Limited, a diversified energy and infrastructure services company, provides equipment, construction, commissioning, and maintenance services to the oil and gas, resources, and infrastructure sectors in Australia.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

How has Valmec's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.8%

VMX

6.3%

AU Energy Services

0.4%

AU Market


1 Year Return

9.3%

VMX

-23.5%

AU Energy Services

9.8%

AU Market

Return vs Industry: VMX exceeded the Australian Energy Services industry which returned -23.5% over the past year.

Return vs Market: VMX matched the Australian Market which returned 9.8% over the past year.


Shareholder returns

VMXIndustryMarket
7 Day-7.8%6.3%0.4%
30 Day-7.8%-0.06%-0.7%
90 Day20.4%-5.9%-0.6%
1 Year9.3%9.3%-17.9%-23.5%16.1%9.8%
3 Year110.7%110.7%54.3%40.7%36.1%17.9%
5 Year63.8%55.3%-3.2%-17.3%49.4%15.8%

Price Volatility Vs. Market

How volatile is Valmec's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Valmec undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VMX (A$0.3) is trading below our estimate of fair value (A$3.39)

Significantly Undervalued: VMX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VMX is good value based on its PE Ratio (10.4x) compared to the Energy Services industry average (15.2x).

PE vs Market: VMX is good value based on its PE Ratio (10.4x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: VMX is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VMX is overvalued based on its PB Ratio (1.2x) compared to the AU Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Valmec forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMX's forecast earnings growth (13.7% per year) is above the savings rate (2.3%).

Earnings vs Market: VMX's earnings (13.7% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: VMX's earnings are forecast to grow, but not significantly.

Revenue vs Market: VMX's revenue (10.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: VMX's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VMX's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Valmec performed over the past 5 years?

-17.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VMX's earnings have declined by -17.9% per year over the past 5 years.

Accelerating Growth: VMX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VMX had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Energy Services industry average (12.5%).


Return on Equity

High ROE: VMX's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: VMX has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: VMX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Valmec's financial position?


Financial Position Analysis

Short Term Liabilities: VMX's short term assets (A$44.0M) exceeds its short term liabilities (A$29.3M)

Long Term Liabilities: VMX's short term assets (44.0M) exceeds its long term liabilities (879.0K)


Debt to Equity History and Analysis

Debt Level: VMX's debt to equity ratio (33.2%) is considered satisfactory

Reducing Debt: VMX's debt to equity ratio has reduced from 66.3% to 33.2% over the past 5 years.

Debt Coverage: VMX's debt is not well covered by operating cash flow (1.8%).

Interest Coverage: VMX's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: VMX has a high level of physical assets or inventory.

Debt Coverage by Assets: VMX's debt is covered by short term assets (assets are 4.432480x debt).


Next Steps

Dividend

What is Valmec's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate VMX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VMX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if VMX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VMX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VMX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VMX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Valmec's salary, the management and board of directors tenure and is there insider trading?

AU$474k

CEO Compensation


CEO

Steve Dropulich 0

6.7yrs

Tenure

AU$473,824

Compensation

Mr. Steve Dropulich has been Managing Director of Valmec Limited since February 2013. Mr. Dropulich served as Vice President and Managing Director at Enerflex AustralAsia Holdings Pty. Ltd. Mr. Dropulich s ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD324.38K) is about average for companies of similar size in the Australian market ($USD259.09K).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Insider Trading

Insider Buying: VMX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$6,87509 Sep 19
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares25,000
Max PriceAU$0.27
BuyAU$33,12424 Jun 19
Core Equities Pty Ltd
EntityCompany
Shares157,737
Max PriceAU$0.21
BuyAU$11,55016 Apr 19
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares55,001
Max PriceAU$0.21
BuyAU$50,64711 Apr 19
Core Equities Pty Ltd
EntityCompany
Shares242,263
Max PriceAU$0.21
BuyAU$109,76202 Apr 19
Core Equities Pty Ltd
EntityCompany
Shares500,000
Max PriceAU$0.22
BuyAU$17,00021 Mar 19
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares75,000
Max PriceAU$0.23
BuyAU$13,00004 Mar 19
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares50,000
Max PriceAU$0.26
BuyAU$13,00028 Dec 18
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares50,000
Max PriceAU$0.26
BuyAU$12,50029 Nov 18
Steve Dropulich
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares50,000
Max PriceAU$0.25

Ownership Breakdown


Management Team

  • Vince Goss

    Executive Director of Business Development & Director

    • Tenure: 0yrs
    • Compensation: AU$65.70k
  • Steve Dropulich

    MD & Director

    • Tenure: 6.7yrs
    • Compensation: AU$473.82k
  • Harry Singh

    Company Secretary & CFO

    • Tenure: 7.6yrs
    • Compensation: AU$344.72k

Board Members

  • Vince Goss

    Executive Director of Business Development & Director

    • Tenure: 0yrs
    • Compensation: AU$65.70k
  • Steve Dropulich

    MD & Director

    • Tenure: 6.7yrs
    • Compensation: AU$473.82k
  • Stephen Zurhaar

    Non-Executive Chairman

    • Tenure: 7.7yrs
    • Compensation: AU$109.50k
  • Stephen Lazarakis

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$65.70k

Company Information

Valmec Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valmec Limited
  • Ticker: VMX
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: AU$37.087m
  • Shares outstanding: 125.72m
  • Website: https://www.valmec.com.au

Number of Employees


Location

  • Valmec Limited
  • 17 Ballantyne Road
  • Kewdale
  • Western Australia
  • 6105
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VMXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2014
VA4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2014
VMXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2014

Biography

Valmec Limited, a diversified energy and infrastructure services company, provides equipment, construction, commissioning, and maintenance services to the oil and gas, resources, and infrastructure sectors ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.